Defence contracts to be further open to SMEs

The federal government has announced an updated Australian industry participation policy for 2019 which extends consideration for contracts to the smallest of SMEs.

The policy, announced by defence industry minister, Linda Reynolds, introduces a new requirement for contractors to provide detailed commitments on how they will utilise and develop local SMEs.

The new policy will apply to defence materiel and non-materiel procurements above $4 million, and for the procurement of construction services above $7.5 million.

These commitments will become contracted deliverables and successful tenders will be required to report on their performance against them.

However, the policy does not mandate or preference local suppliers.

Reynolds said: “The policy will make it easier for any business, particularly SMEs, to compete for Defence work by providing a consistent approach to consideration of Australian industry in Defence procurement.”

She said the Policy built on the success of the government’s Australian Industry Capability Program and Local Industry Capability Plan.

Picture: Defence

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